Coffee chain Starbucks (SBUX) closed its previously announced joint venture with Boyu Capital to drive growth in China. The company had announced in November 2025 that it had entered into an agreement with alternative investment firm Boyu to operate the retail business in China.
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Starbucks’ JV with Boyu to Enhance China Business
Under the joint venture, funds managed by Boyu Capital now hold a 60% stake in Starbucks China retail operations, while Starbucks retains a 40% interest. Importantly, Starbucks will continue to own and license the brand and intellectual property to the joint venture.
The joint venture currently comprises 8,000 company-operated coffeehouses, which will transition to a licensed operating model. It aims to expand the store footprint to 20,000 locations in the years ahead.
China remains a key market for Starbucks. However, the company has been struggling to grow its business in recent years, first due to pandemic-related restrictions and then hit by intense competition from local players such as Luckin Coffee (LKNCY) and Cotti.
Starbucks has been trying to revive its business through its “Back to Starbucks” strategy. However, higher coffee prices, tariffs, and macro uncertainty are impacting the company’s turnaround. As part of its turnaround efforts, on Thursday, the company announced that it will award baristas and shift supervisors quarterly bonuses of $300 if their stores achieve certain targets.
Is Starbucks Stock a Strong Buy?
Given the ongoing challenges, Wall Street has a Moderate Buy consensus rating on Starbucks stock, based on 13 Buys, 11 Holds, and 3 Sells. The average SBUX stock price target of $100.26 indicates about 11% upside potential. SBUX stock has risen 7% year-to-date.
